Mercedes CEO Advocates for Strategic Trade Alliances with US and China

Mercedes

Call for EU-US Trade Negotiations Amid Rising Tariff Threats

Ola Källenius, the CEO of Mercedes-Benz and the new leader of the European Automobile Manufacturers' Association (ACEA), has emphasized the need for a strategic trade agreement between the European Union (EU) and the United States. In a recent statement, Källenius urged the EU to pursue a "grand bargain" to sidestep potential trade conflicts, especially in light of the incoming US administration's threat to impose blanket tariffs on imports.

Strengthening Ties with China and Fostering Market Resilience

Beyond the Atlantic, Källenius also addressed the relationship between the EU and China, advocating for stronger internal markets rather than protective barriers. His comments highlight the delicate balance of protecting domestic jobs while benefiting from free international trade. The EU is currently managing an anti-subsidy case concerning battery electric vehicles (BEVs) imported from China, with Källenius calling for a resolution that supports both trade and environmental goals.

Navigating Automotive Decarbonization and Regulatory Challenges

The Mercedes CEO pointed out the automotive industry's need for clear regulatory frameworks, especially concerning CO2 emissions targets for EU vehicles. With 2025 and future benchmarks approaching, Källenius argues for a market-driven approach to decarbonization, rather than one that penalizes non-compliance, which could hinder investment in research and development.